SUMMARY OF BOARD DECISIONS

Summary of Board decisions are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions are included in an Exposure Draft for formal comment only after a formal written ballot. Decisions in an Exposure Draft may be (and often are) changed in redeliberations based on information provided to the Board in comment letters, at public roundtable discussions, and through other communication channels. Decisions become final only after a formal written ballot to issue an Accounting Standards Update.

January 9, 2013 FASB Board Meeting

Accounting for financial instruments: classification and measurement. The Board decided to extend the practicability exception to fair value for equity securities without a readily determinable fair value to investments in ownership interests in an entity that are not equity securities and not subject to the practical expedient (that is, the net asset value per share expedient) to estimate fair value in accordance with paragraph 820-10-35-59. The Board also decided to extend the previously deliberated impairment guidance for equity securities without a readily determinable fair value measured using the practicability exception to all investments in ownership interests that qualify and are measured pursuant to the practicability exception.

The Board decided to retain the guidance for accounting for other investments in Section 958-325-35, Not-for-Profit Entities—Investments—Other—Subsequent Measurement, and limit its scope to (1) investments that qualify for the equity method of accounting, and (2) investments that are not financial instruments. Therefore, all such investments, which do not include those of not-for-profit health care entities in the scope of Topic 954, Health Care Entities, would be measured either all at fair value or all at a measurement attribute consistent with the recognition guidance for those investments (that is, equity method of accounting, or cost for nonfinancial instruments).

The Board decided that an entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity would provide the disclosures required by those amendments retrospectively for all comparative periods. This effective date and transition is the same as Update 2011-11.

The Board directed the staff to draft an Accounting Standards Update for vote by written ballot.